Dogecoin has pulled back from a recent high near $0.1050 and is now clinging to the $0.10 support level, but technical indicators suggest the cryptocurrency could extend its slide. The price dropped below $0.1020 and is trading under that mark along with the 100-hourly simple moving average, signaling a shift in momentum.
Why the Correction Started
The downturn began after Dogecoin failed to hold gains above the $0.1050 zone. Sellers stepped in, pushing the price below $0.1020 and triggering a bearish trend line on the hourly chart of the DOGE/USD pair on Kraken. That trend line now acts as resistance at $0.1020.
Key Levels to Watch
On the upside, immediate resistance sits at $0.1020. A move above that could face a tougher test at $0.1036, followed by the major barrier at $0.1050. If DOGE closes above $0.1050, it could rally toward $0.1088, then $0.1120, and possibly $0.1150. But the path higher looks steep given current selling pressure.
Support on the downside is first at $0.10, which aligns closely with the 61.8% Fibonacci retracement of the move from $0.0968 to $0.1048. Below that, the next major floor is $0.0985, with a more critical level at $0.0965. A break below $0.0965 could open the door to $0.0920 and then $0.0880.
Technical Indicators Turn Bearish
The hourly MACD is gaining momentum in the bearish zone, while the Relative Strength Index (RSI) sits below the 50 level. Both readings point to weakening buyer interest and potential for further downside. The price remains below the 100-hour SMA, a bearish sign for short-term traders.
The question now is whether Dogecoin can defend the $0.0965 support zone. If it fails, the next stop could be $0.0920. If buyers step in to hold the line, a recovery back above $0.1020 might be the first sign of a turnaround.
